Count of Japanese Cos. in India reduces from 1455 to 1400 in 2 years, second consecutive fall since 2021
However, the number of Japanese business establishments (liaison office, or branch office etc) increased by 111 as the number in October 2022 was 4,901 as compared to previous year at 4,790 in 2021.
NEW DELHI: An annual survey by the Japan government and its trade bodies in India has revealed that the number of Japanese companies in India continued to decrease for the second consecutive year as the count decreased by 39 companies to 1400 in the year 2022 from the previous year’s 1439. Earlier too, the number of Japanese companies reduced by 16 from 1455 in the year 2020 to 1439 in 2021. Ironically, the number increased by just one company from the year 2019 to 2020.
The survey outcomes hold huge significance in the backdrop of the fact that Japanese Prime Minister Fumio Kishida during his visit to India last year announced a 5 trillion yen ($42 billion) investment here over the next five years during a meeting with Prime Minister Narendra Modi in New Delhi.
However, the survey revealed that the total number of Japanese business establishments (liaison office, or branch office etc) as foreign entities in India increased by 111 as the number in October 2022 was 4,901 as compared to previous year at 4,790 in 2021.
A statement by the embassy of Japan issued in New Delhi recently attributed the decreased in the count of Japanese companies in India to the factors such a
s COVID-19 pandemic. “The total number of companies decreased (in India) due to the closure of companies as a result of COVID19, corporate restructuring, reorganization, etc. while the total number of establishments increased due to new openings of existing companies,” it added.
The Embassy and Consulates-General of Japan in India and JETRO (Japan External Trade Organization) updated the List of Japanese Business Establishments in India as of October 2022 with the cooperation of Japanese Chambers of Commerce and Industry in India (JCCII) and Japanese Associations across India.
The joint survey revealed that while the states like Rajasthan and Karnataka exhibited a slight increase in the number of Japanese companies, Haryana and Maharashtra exhibited a decrease.
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“While there was an increase in the number of establishments in such sectors as “Wholesale and Retail Trade” and “Finance and Insurance Industry”, the “Lodging Industry and Restaurant” and “Education and Learning Support” exhibited a decrease. Manufacturing sector accounts for about half of the total Japanese companies and about a third of the Japanese business establishments in India,” the survey revealed.
As regards the definition of business establishments, the statement clarified that these are primarily the Liaison Office/ Branch Office etc. of a Japanese company in India (as a foreign entity) as Head Office, Manufacturing Unit, or Branch Office/ Business Office etc. Franchisees or dealers are not counted under this category. Other business establishments include the business enterprise founded in India by Japanese nationals (Japanese share 10% or more). In case of JVs, only those companies where the Japanese company has more than 10% shareholding, are counted under this category.
